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The previous offer lapsed on 26 January last year because CDL “did not satisfy the minimum acceptance condition of more than 50 percent of M&C’s shares that it did not already own”.
City Developments Limited (CDL) has made another takeover bid of London-listed Millennium & Copthorne Hotels (M&C).
The offer will see CDL paying a maximum cash consideration of £776.29 million (S$1.34 billion) for the 34.8 percent of the shares that it does not own – valuing the hotel at £2.23 billion (S$3.86 billion).
In an SGX filing, CDL said the offer – which is final and will not be increased – represents a premium of about 37 percent to M&C’s closing price on 6 June.
It noted that M&C shareholders will be entitled to receive 685 pence for each share.
This is an increase of 65 pence from the “previously recommended final cash offer of 620 pence per M&C share (which included a special dividend of 20 pence per share) made to M&C shareholders on 21 December 2017”.
The previous offer lapsed on 26 January last year because CDL “did not satisfy the minimum acceptance condition of more than 50 percent of M&C’s shares that it did not already own”.
This time, CDL revealed that it has received irrevocable undertakings from key minority shareholders to accept the final offer. These shareholders hold around 43.6 percent of the M&C shares not already owned by CDL.
CDL’s Group chief executive officer Sherman Kwek said the move is in line with CDL’s strong focus on enhancing underperforming assets and boosting recurring income.
“The offer enables shareholders to exit an illiquid stock at a significant premium,” he said.
“We believe that a privatised M&C will be in the best position to navigate the increasingly challenging and competitive global hospitality landscape with agility and nimbleness. M&C will be able to leverage CDL’s significant resources, comprehensive real estate capabilities and global network to reposition its assets and drive sustainable hotel performance.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru
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